Corporate fraud a growing virus
Internal fraud, committed by company staff, represents a growing threat to SMEs in Europe. According to a study, 38% of small businesses have been victims of fraud in the last 24 months, with a quarter suffering a financial impact of more than €1 million. Internal fraud can take various forms, such as undeclared conflicts of interest, breaches of professional confidentiality or passive bribery.
Recently, several cases of internal fraud have shaken European SMEs:
– In France, the financial director of an SME embezzled 1.2 million euros over 5 years by falsifying invoices and bank statements.
– In Germany, an administrative employee stole 800,000 euros from her company by issuing false expense reimbursements.
– In Italy, a purchasing manager accepted bribes from suppliers in exchange for contracts, causing his company 500,000 euros in losses.
Fraud: 3 simple methods to prevent internal risks
1. Carry out sufficient controls, including checks to prevent and detect fraud, before authorizing a payment.
2. Include monitoring procedures in internal control to prevent and detect fraud, particularly in areas of significant risk.
3. Adequately train staff at all operational levels, including on fraud awareness.
European SMEs must act now to protect themselves against internal fraud. Eterra Partners offers tailor-made solutions to help companies implement effective and regulatory-compliant anti-fraud procedures. Contact us today to learn more about how to secure your business against this scourge.
